2023 (1) TMI 628

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....the Income Tax Act, 1961 ["Act" in short]. 2. Facts are, in brief, that the assessee is an individual and filed her return of income for the assessment year 2014-15 on 13.03.2015 admitting total income of Rs..9,08,720/-. In the return of income, the assessee had admitted an amount of Rs..52,22,970/- as long term capital gains on the sale of shares of M/s. Shree Shaleen Textiles Ltd. i.e., SHRSHA TEX and claimed exemption under section 10(38) of the Act. The Assessing Officer made an enquiry about M/s. Shree Shaleen Textiles Ltd. and came to a conclusion that this is one of the bogus company as per the investigation conducted by the Directorates of Investigation, Kolkata and Delhi. In view of the above, the Assessing Officer issued show-cau....

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....nd that due to scrutiny assessment proceedings, the assessee paid the tax and if there is no scrutiny taken place, the income of the assessee would have escaped assessment and therefore, levied minimum penalty under section 271(1)(c) of the Act. On appeal, the ld. CIT(A) deleted the penalty on the ground that the assessee made the claim of long term capital gain, which is not eligible and therefore, it is not sufficient ground to invoke the provisions of section 271(1)(c) of the Act. 4. Against the order passed by the ld. CIT(A), the Department carried the matter in appeal before the Tribunal. The ld. DR has submitted that the claim made by the assessee is a bogus claim and therefore, the penalty has to be levied under section 271(1)(c) of....